VW says half its sales by 2025 will be SUVs, and it plans 30 models

27 October 2018 - Autoblog

VW says half its sales by 2025 will be SUVs, and it plans 30 models

It needs fat SUV profits to fund autonomous and EV development

It's betting on electric vehicles, but Volkswagen is also adamant about increasing the SUVs in its portfolio. The carmaker announced Thursday that by 2025, it will offer more than 30 SUV/crossover models globally, and it expects half of all Volkswagens sold around the world to be sport utility vehicles.

Currently, one in five new Volkswagens is an SUV, and VW expects SUV sales growth especially in North and South America as well as China. The Tiguan is reportedly within the top 10 bestselling cars in the world, and nearly 5 million Tiguans have been sold since its introduction. The Touareg, meanwhile, is nearing the million-unit milestone.

In addition to offering larger crossovers like the Atlas, VW is introducing a small, Polo-sized crossover model, the T-Cross, which will be sold in Europe, China and South America. Small SUVs are increasingly popular in developing markets, and a large number of carmakers such as Ford and Renault are offering profitable lower-end crossovers such as the Ecosport and Duster.

So why all the SUVs? The introduction of the T-Cross and others is partly due to VW wanting to pay for its electric and autonomous ventures, VW board member Jürgen Stackmann said.

"SUVs are becoming increasingly popular with our customers throughout the world," says Stackmann, "This is why we are consistently pursuing our current SUV offensive. It will be a key contribution to strengthening our core business so that we can invest the necessary billions of euros in mobility and autonomous driving."

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